On Our Radar

On Our Radar

Report: Blackstone Explores Joint Dell Bid With TPG

With Dell’s (DELL) go-shop window set to close on Friday night, private-equity giant Blackstone (BX) has reportedly held talks with rival buyout shop TPG about a counterbid and is eyeing the PC company’s financial-services business.

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According to The Wall Street Journal, Blackstone is racing to determine what approach it may take, if any, to come up with a counterbid that would trump the $24.4 billion bid by Michael Dell and Silver Lake Partners.

Blackstone has talked with another large private-equity firm, TPG, about doing a deal, the paper said. Blackstone has also had conversations with Dell’s largest outside shareholder, Southeastern Asset Management, about rolling its 8.4% stake into a takeover bid, the Journal reported.

In addition to exploring a rival bid of its own, Blackstone has held talks with General Electric's (GE) GE Capital about a joint offer to acquire Dell’s financial-services business, the Journal reported. Dell Financial Services originated $3.5 billion in new financing during the fiscal year ended February 1, down from $3.8 billion the year earlier, the paper said.

The Blackstone buzz comes ahead of a midnight Friday deadline set by Dell’s special committee to receive a letter of interest or a superior proposal to the management leveraged buyout that was unveiled in January.